RP portfolio falls 29 percent

RP portfolio falls 29 percent

MANILA: Foreign portfolio flows into the Philippines fell 29 percent from a year ago to US$104.4 million in November on concerns about a possible sovereign credit rating downgrade, the central bank said on Monday.

The figure stood at US$147.7 million in November 2003.

For the 11 months to November, portfolio inflows reached $626.9 million, barely changed from $625.5 million in the same period last year. Inflows had been rising since August.

"There are concerns of a possible two-notch downgrade," central bank governor Rafael Buenaventura said, referring to the sovereign credit rating. He said this was unfortunate given the high level of liquidity in the regional market.

Last week, London-based Fitch Ratings affirmed the Philippines' BB rating on long-term foreign currency and BB-plus rating on long-term local currency, but revised its outlook to negative from stable. -- AFP